1. Unauthorized withdrawal from Post Office Monthly Income Scheme accounts — Complaint for deficiency of service under Consumer Protection Act, 1986. (Para 3 , 4 , 5 )
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2019 Supreme(SC) 2012
SUPREME COURT OF INDIA
Dhananjaya Y. Chandrachud, Hemant Gupta, JJ.
Jitendra Kumar Karsandas Ved & Ors. - Appellants
Versus
Union Of India & Ors. - Respondents
Civil Appeal No. 1586 of 2019
Decided On : 11-02-2019
Advocates Appeared:
Prerana Chaturvedi, Adv., Manju Jetley, Adv., Ashwani Bhardwaj, Adv.
Prerana Chaturvedi, Adv., Manju Jetley, Adv., Ashwani Bhardwaj, Adv.
The Court held that depositors whose MIS accounts were unauthorizedly withdrawn are entitled to interest at the scheme's rate (8% per annum) until the maturity of the accounts, and interest at 6% per annum from the date of maturity until realization.
Headnote:
Post Office (Monthly Income Account) Rules, 1987 - Consumer Protection Act, 1986 - Appellants complaining of a deficiency of service - Refund of an amount to with 15% interest - Monthly Income Account - Tenure of MIS Accounts - Interest - Savings Bank Account - Appellants opened four accounts under the Monthly Income Scheme (MIS) of the Postal Department at the Head Post Office, Godhara. Under the Post Office (Monthly Income Account) Rules, 1987, interest was payable monthly, at the rate of 8% per annum. The details of the four accounts - Amount was unauthorized withdrawn by a third party - An amount was withdrawn from MIS Accounts of the appellants and deposited in a Savings Bank Account and was further withdrawn - Report of the handwriting expert indicated that the signature against which withdrawal took place was not that of the appellants, original complainants - Appellants moved the District Consumer Disputes Redressal Forum, Godhara complaining of a deficiency of service under Consumer Protection Act, 1986 - District Forum allowed the complaint and directed a refund of an amount to appellants on maturity, with 15% interest from 28 February 2012 until realization, District Forum directed that if amount is paid within sixty days from date of order, the interest shall stand reduced to 9% - Incidental costs were awarded – Held, Narration of facts would indicate that during the tenure of the MIS Accounts, appellants were entitled to interest at rate of 8%. After maturity period, the appellants would be entitled to interest at the rate of 6% per annum - We accordingly modify the order of NCDRC by directing as follows (i) Since the appellants have withdrawn the principal amounts, as awarded, the balance on account of the interest shall be paid within four weeks (ii) The appellants would be entitled to interest at the rate of 8% per annum until the maturity of the respective MIS Accounts; and (iii) After the said dates of maturity of the respective MIS Accounts, the appellants would be entitled to interest at the rate of 6% per annum - Appeal is disposed of.
Act Referred
Legal Category Hierarchy
Table of Contents
2. Claim for entitlement to interest at the prescribed rate for the entire tenure of the accounts. (Para 7 )
3. Interest rates for MIS accounts are determined by the tenure, with specific rates applicable during the account term and after maturity. (Para 9 )
4. Interest on MIS accounts is payable at the prescribed rate until maturity and at a modified rate after the maturity period. (Para 9 )
5. Order modified to grant interest at 8% per annum until maturity and 6% per annum thereafter. (Para 10 , 11 )
6. How is interest calculated for Monthly Income Scheme (MIS) accounts in the event of a dispute over unauthorized withdrawals?
The account holder is entitled to the prescribed interest rate (8% per annum) until the maturity of the respective MIS accounts, and a lower rate (6% per annum) after the date of maturity. (Para 9 , 10 )
ORDER
1. Leave granted.
2. This appeal arises from an order of the National Consumer Disputes Redressal Commission ("NCDRC") dated 23 October 2018.
3. The appellants opened four accounts under the Monthly Income Scheme (MIS) of the Postal Department at the Head Post Office, Godhara. Under the Post Office (Monthly Income Account) Rules, 1987, interest was payable monthly, at the rate of 8% per annum. The details of the four accounts were as follows:
| Sr.No. | Category | Date of Opening | A/c No. | Amount of Deposit (Rs.) |
| 1. | MIS | 29.01.09 | 2110542 | 2,20,500 |
| 2. | MIS | 09.04.09 | 2110658 | 1,08,000 |
| 3. | MIS | 03.09.10 | 2112350 | 1,00,500 |
| 4. | MIS | 20.11.10 | 2112578 | 51,000 |
4. On 25 January 2012, the amount was unauthorizedly withdrawn by a third party. An amount of Rs 4,73,325 was withdrawn from the MIS Accounts of the appellants and deposited in a Savings Bank Account and was further withdrawn. The report of the handwriting expert indicated that the signature against which withdrawal took place was not that of the appellants, the original complainants.
5. The appellants moved the District Consumer Disputes Redressal Forum, Godhara complaining of a deficiency of service under the Consumer Protection Act, 1986. The District Forum allowed the complaint and directed a refund of an amount of Rs 4,80,000 to the appellants on maturity, with 15% interest from 28 February 2012 until realization. However, the District Forum directed that if the amount is paid within sixty days from the date of the order, the interest shall stand reduced to 9% from 28 February 2012 until realization. Incidental costs were awarded.
6. In appeal, the State Consumer Disputes Redressal Commission modified the order of the District Forum, to the extent that refund of Rs.4,80,000 was directed together with interest at 6% per annum from 28 February 2012 until realization. This order of the State Consumer Disputes Redressal Commission has been upheld by the NCDRC in revision.
7. The grievance of the appellants falls in a narrow compass. The appellants submitted that they would be entitled to interest at the rate of 8% per annum for the entire tenure of the MIS Accounts.
8. We have heard learned counsel for the appellants and learned counsel for the Postal Department.
9. The narration of facts would indicate that during the tenure of the MIS Accounts, the appellants were entitled to interest at the rate of 8%. After the maturity period, the appellants would be entitled to interest at the rate of 6% per annum.
10. We accordingly modify the order of the NCDRC by directing as follows:
(i) Since the appellants have withdrawn the principal amounts, as awarded, the balance on account of the interest shall be paid within four weeks.
(ii) The appellants would be entitled to interest at the rate of 8% per annum until the maturity of the respective MIS Accounts; and
(iii) After the said dates of maturity of the respective MIS Accounts, the appellants would be entitled to interest at the rate of 6% per annum.
11. The appeal is disposed of in the above terms. No costs.
